UK economy 'not yet in the clear'

A drop in the value of sterling against a range of key currencies over the course of last month gives a clear indication that the country's economy is not yet in the clear.

New figures from international money transfer specialists HiFX indicates that while rallies in the value of sterling were supported throughout June and July, the currency has not performed so well since.

But continuing volatility in currency markets means that trends now emerging should not be taken for granted, the company believes.

HiFX director Mark Bodega said that while there has been some positive news in the UK, pressure continues to be exerted on the pound as a result of a number of factors, including the unemployment level and the state of the government coffers.

"As the summer draws to a close it has never been more important to protect yourself against currency volatility. Anyone exposed to the currency markets, should maintain a cautious approach in these uncertain markets and fix costs where possible from the outset," said Mr Bodega.

The rate between sterling and euro remained the most stable of those listed by HifX again this month.

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Written by Neil Waterman